The Role of Drop Shipping in E-Commerce: The Algerian Case

The Role of Drop Shipping in E-Commerce: The Algerian Case

Brahami Menaouer, Semaoune Khalissa, Mohammed El Amine Belayachi, Benslimane Amine
Copyright: © 2021 |Pages: 19
DOI: 10.4018/IJEBR.2021100104
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Abstract

During the recent years, e-commerce has been constantly growing in various industrial sectors. E-commerce has also changed the buying pattern of customers. E-commerce is a concept that has gained enormous popularity in recent decades. There are a multitude of variants and strategies of e-commerce such as drop shipping, which is renowned for its low cost and high efficiency. However, e-commerce is a new technology that is growing rapidly. It has the ability to create a truly global digital economy. In this research paper, the authors study the state of the drop shipping market for e-commerce in Algeria and the possibility to introduce new models by analyzing different aspects that can have a huge impact on the evolution of drop shipping in e-commerce in order to promote economic development in Algeria. To develop a better understanding, an exploratory study via a structured questionnaire intended for the general Algerian public drop shipper market was carried out.
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1. Introduction

The last decade has seen the development of Information and Communication Technologies (ICTs) in particular the Internet. This technological evolution has caused profound changes in the economic environment for companies and the birth of a new economy or a new market called the “virtual market” (Medjani, 2017; Alba et al. 1998). The advancement of ICT' has influenced human conduct and profoundly changed the business condition. It is considered as a deadly marketing sin the firm that has not used innovation (Kotler, 2004). The rise of e-commerce is considered as the genuinely progressive effect of internet transformation (Alyoubi, 2015; Drucker, 2002). Otherwise, e-commerce viably eradicates the need for enormous speculations or costs on the physical foundation to build up a global presence which has prompted an upheaval in the manner in which business is around the world (Drucker, 2002; Kamalapur & Lyth, 2020). Besides, technology gave drop shipping new opportunities that now drop shipping moved from traditional business to online business. The old retail fulfillment process changed to online and more competitive advantages against traditional methods (Israfilzade, 2017; Chen et al. 2018).

Likewise, e-commerce can possibly increase the value of businesses and consumers in developing countries than in developed countries (Arnold & Quelch, 1998). For (Chaabna & Wang, 2015; Yousefi, 2009), e-commerce means different things to different people, rendering a clear-cut definition somewhat problematic. According to (UNDP, 2005), developing countries should embrace e-commerce wholeheartedly as it will enhance their economic and social development, lead to gains in commercial productivity, lower the operating costs of businesses and enhance the level of domestic integration with international markets.

Nowadays, the world is facing a global pandemic reported by the WHO (World Health Organization) due to Covid-19, while thousands of infections and deaths are reported daily (Galanakis, 2020). For (Forbes, 2020), Covid-19 accelerated e-commerce growth “4 to 6 years”. Coronavirus drastically changes the behavior of humans, the nature of trading, business, and even the way of life. “Study says that online purchasing trends formed during the pandemic may see permanent adoption”, Taylor Schreiner, Director, Adobe Digital Insights, said in a statement. “While BOPIS (Buy Online, Pick up In-Store) was a niche delivery option pre-pandemic, it is fast becoming the delivery method of choice as consumers become more familiar with the ease, convenience and experience”1. (Shahzad et al. 2020) investigated the Covid-19 impact on e-commerce usage in the Malaysian healthcare industry through the Technological, Organizational, and Environment (TOE) model. Another study was conducted by (Bhatti et al. 2020) in order to determine the e-commerce trends in coronavirus predicament as well as how imminent progress in e-commerce might affect consumer behavior in the future. The authors claimed that e-commerce is become a substitute source and considered top in this condition.

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